Canfax Weekly Article | Report for the week of January 22, 2024

Sale volumes were too light to establish a weighted average fed price, but the market tone was steady. Last week dressed sales and bids were reported $362-365/cwt delivered.

U.S. packer interest was noted but no cash sales were confirmed. The few cattle that traded were scheduled for March delivery. Tentatively Alberta fed cash-to-futures basis did weaken last week. Western Canadian fed slaughter for the week ending January 13th totaled just over 40,000 head, steady with last year.

The Canfax average feeder steer price was $3.50/cwt higher, while heifer prices strengthened $6.50/cwt. Over the past couple of weeks, Alberta 550 pound steers have averaged in the mid to upper $370’s/cwt, prices are $75/cwt higher than a year ago. With colder temperatures, Alberta auction volumes have been lighter than normal for the first half of January. For the week ending January 19th, Alberta auction volumes totaled just over 8,500 head, 17,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending January 6th totaled 1,363 head, 62 per cent larger than last year.

Alberta D2 cows traded $2.5/cwt higher and live trade was reported from $105-137/cwt. D3 cows averaged $109/cwt. Last week, butcher bulls traded $10.25/cwt higher, averaging $152.25/cwt, with a trading range from $135-167/cwt. Canadian butcher bull exports to the U.S. for the week ending January 6th totaled 78 head.

Bull

• Fourth quarter placements in the U.S. are the smallest since 2015
• Last week U.S. beef production was estimated at 524 million pounds, for the middle of Janauary this is the smallest production since 2020
• Retail beef prices are 9 per cent higher than last year

Bear

• Western Canadian steer carcass weights are 79 pounds heavier than last year
• In November, U.S. beef exports were 17 per cent lower than last year
• Western Canadian packers are comfortable bought out in front, lift times are 7+ weeks out